It comes as a surprise to absolutely no one that precious metal retirement accounts have come into popularity of late. Besides gold investing, all four of our favorite metals, including silver, platinum and palladium, are also seeing unprecedented demand amongst new investors.
For those holding precious metal retirement accounts, our advice is to hold a little in each metal. Platinum and gold where you put the big money, of course, but the convenience and accessibility of silver and palladium cannot be overestimated.
Besides the convenience of having smaller values of metal in your retirement fund, there’s also the fact that, while all metals tend to correlate in terms of performance, so, while gold is up, so is silver, and so on, they don’t always correlate perfectly. In other words, silver might see an exceptionally strong week while gold remains level during that period. And so, it’s nice to have the option to buy any metal seeing a slow week, while selling any metal seeing an unusually strong period.
Say you need to dip into your precious metal retirement accounts to put a down payment on your dream home. Hypothetically, we could say that most analysts are predicting that platinum is currently peaking while gold is still gaining steam. By having both metals available to you, you can sell some platinum, while holding onto your gold in order to reap the full benefits of the metal’s growth.
Of course, if you like, you can simply pick your favorite metal and put all of your money into it. It’s a good idea to keep investments in each of the precious metals, but regardless of what you choose, you will wind up with a nice, solid, secure investment should we run into another recession between now and the time you retire.
The fact is that there are quite a few ways to manage your precious metal retirement accounts. You can stock away some money and simply forget about it, or you can enjoy the thrill of watching the spot prices like a hawk and maximizing your investment dollar. The truth is that precious metals are there to provide you with peace of mind. However you are comfortable investing in your precious metal retirement accounts, that’s the right way for you to invest in them.
If you like, you can even completely ignore what the analysts say about your favorite metal, and simply do as you please with it. So long as you do have some money tucked away in your precious metal retirement accounts, you don’t have much to worry about.
In other words, when you buy gold, silver, platinum or palladium, you’re not simply buying metal, you’re buying comfort, and you’re buying the best insurance policy you could ask for in case of recession and other economic crises. That’s exactly why metal has remained a strong option for investors, and it’s exactly why precious metal retirement accounts are catching on more and more these days in light of the recession we’re currently facing. Metals provide comfort, security, and peace of mind, and in the end, that’s the most you could possibly ask of your investment dollar.
August 9, 2009